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Atlanta, Georgia - The U.S. Department of Labor
has sued to appoint a successor fiduciary to manage a defunct Gainesville,
Georgia, company’s employee profit sharing plan. Primecare of North
Florida’s plan has been without oversight since the company ceased doing
business in 2002.
“This action demonstrates our commitment to protect
the hard-earned benefits of American workers,” said Howard Marsh,
director of the Atlanta regional office of the department’s Employee
Benefits Security Administration (EBSA), which investigated the case.
The suit alleges a violation of the Employee Retirement
Income Security Act (ERISA) occurred when the profit sharing plan was left
without a fiduciary after the death April 6, 2003, of its only named
trustee, Ralph Hartke Jr. According to the suit, the plan was abandoned
after Hartke’s death and was not properly terminated.
Plans become “orphan plans” when they are abandoned
by all fiduciaries designated to manage and operate them, leaving
participants without a way to transact business and communicate with the
plan.
The suit, filed in federal district court in
Gainesville, seeks an order appointing an independent fiduciary to
administer the plan and assure distribution of its assets to participants
and beneficiaries. The court is also asked to order that the plan be
formally terminated.
Primecare, a medical provider, was dissolved January
17, 2002. The employee profit sharing plan had 10 participants and assets
of $85,000 as of September 2004.
In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to the pension, 401(k), health and other
benefits of millions of American workers and their families. Employers and
workers can reach EBSA’s Atlanta regional office at 404.562.2156 or can
contact EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with
problems relating to private-sector retirement and health plans.
(Chao v. Primecare of North Florida, PA)
Civil Action No. 1:05 CV 107 |
